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The blog postSAP EA Framework Presentation at the TOGAF® Standard 10th Edition – Launch Event[1]presented the SAP Enterprise Architecture Methodology, which aims to align Business Architecture Domain with IT Solution Architecture Domain.
Figure 1 – SAP Enterprise Architecture Methodology – Linking Business and IT
Based on the SAP Enterprise Architecture Methodology, the standardized SAP Reference Architecture Content provides a harmonized Business and Solution Architecture Reference content which customers can leverage to accelerate their business transformation. The content aims to align business and IT by mapping business capabilities and processes with IT solutions. As such, it is composed of 2 parts:
- SAP Reference Business Architecture (RBA) describes the scope and undertaking of any enterprise, in a business-centric and product-agnostic way.
- SAP Reference Solution Architecture (RSA) explores how SAP addresses a customer’s business challenge with its unique product portfolio.
In this blog, we will take a closer look at the SAP Reference Business Architecture Content – what it is and how it is structured.
A closer look at the SAP Reference Business Architecture (RBA)
The SAP Reference Business Architecture (RBA) is based on SAP’s 50 years of industry experience and is aligned with best practices and standards, such asAPQC[2]. It is comprised of the following core elements:
Figure 2 – SAP Reference Business Architecture – Core Elements
The enterprise through the lens of business capabilities…
From a functional-perspective, the SAP Reference Business Architecture (RBA) describes an enterprise using 4 Enterprise Domains:
- Products & Services
Developing and managing products and services. - Supply
Fulfilling the demand for products and services. - Customer
Generating the demand for products and services. - Corporate
Planning and managing the enterprise.
These Enterprise Domains can be decomposed into Business Domains and Business Areas, which group Business Capabilities. A Business Capability defines the “what” the enterprise does, constituting a particular ability that an enterprise may possess, which is needed to deliver value or achieve a specific outcome.
The enterprise through the lens of business processes…
From a process-perspective, the SAP Reference Business Architecture (RBA) describes an enterprise based on 8 generic End-to-End Business Process:
- Idea to Market
Managing the lifecycle of products and services, such as managing the product portfolio and investments, identifying new products and services, finalizing the design, managing intellectual property, and product compliance. - Source to Pay
Managing the comprehensive sourcing and procurement of products and services, such as the procurement planning and managing spend, sourcing and supplier selection, negotiating and managing supplier contracts, and preparing and executing operational procurement. - Plan to Fulfill
Planning, production, delivery, and fulfillment of products or services as well as tracking and tracing, data management, and sustainable manufacturing operations. - Lead to Cash
Marketing and selling of products and services, managing sales orders and their fulfillment, providing after-sales related services, invoicing customers, managing accounts receivable and collecting payment. - Recruit to Retire
Managing the overall lifecycle of employees, including HR strategizing, planning, and budgeting. - Acquire to Decommission
Managing the overall lifecycle, including planning asset strategy and investments, defining asset maintenance strategies, acquiring or building assets, onboarding assets, planning and executing asset maintenance, as well as offboarding and decommissioning assets. - Governance
Covering all business activities related to internal operations, such as developing and managing enterprise strategy and plans, managing portfolio and projects, managing global trade and tax, and managing risk and compliance. - Finance
Covering all business activities related to financial operations, such as optimizing financials, managing account receivables and payables, accounting and financial close, and managing treasury
The generic end-to-end business processes are foundational templates, which contain all the business activities required in a respective context. As such, the generic business process may have different variations, which contain the actual executable business process that addresses specific use cases, industries and other contexts.
As an example - the following are variations of the generic Lead to Cash (to name only a few):
- Lead to Cash for Business-to-Business
Marketing and selling tangible products and one-time services to B2B customers. - Business-to-Consumer Omni-channel Commerce, Physical Products
Marketing and selling tangible products to B2C customers. - Subscription and Usage Business
Selling, delivering and invoicing subscription-based services and usage to B2B and B2C customers. Customers with subscription-based services have recurring charges during their subscription period. For usage-based customers, the use of resources is monitored, and customers are charged only when they use a certain product or service. - … and more
At a more granular level, a business process can be decomposed into different Business Activities, which describes how value is generated by using certain Business Capabilities.
What’s next?
As previously mentioned, the SAP Reference Architecture Content helps align Business and IT by mapping business challenges with IT solutions. It is composed of 2 parts:
- SAP Reference Business Architecture (RBA) describes the scope and undertaking of any enterprise, in a business-centric and product-agnostic way.
- SAP Reference Solution Architecture (RSA) explores how SAP addresses a customer’s business challenge with its unique product portfolio.
In the next blog, we will take a closer look at the SAP Reference Solution Architecture (RSA) and how it complements the SAP Reference Business Architecture (RBA).
Do you want access to the SAP Reference Architecture Content? As part of the Beta program, the SAP Reference Architecture Content is available on SAP Signavio. Check the blogSuccess for the One Process Acceleration Layer Beta Program, underway with over 120 users[3] to learn more.
References:
[1] SAP EA Framework Presentation at the TOGAF® Standard 10th Edition – Launch Event
https://groups.community.sap.com/t5/enterprise-architecture-blog/sap-ea-framework-presentation-at-th...
[2] AQPC Website
https://www.apqc.org/
[3] Success for the One Process Acceleration Layer Beta Program, underway with over 120 users
https://blogs.sap.com/2022/07/21/success-for-the-one-process-acceleration-layer-beta-program-underwa...
As an expert in enterprise architecture and SAP solutions, I bring a wealth of knowledge and practical experience in aligning business and IT through methodologies like the SAP Enterprise Architecture Methodology. My expertise is demonstrated through years of hands-on involvement in implementing SAP solutions and staying abreast of industry standards and best practices.
In the provided blog post, titled "SAP EA Framework Presentation at the TOGAF® Standard 10th Edition – Launch Event," the focus is on introducing the SAP Enterprise Architecture Methodology and specifically delving into the SAP Reference Business Architecture (RBA). Let's break down the key concepts presented in the article:
SAP Enterprise Architecture Methodology (EAM):
The SAP EAM aims to align the Business Architecture Domain with the IT Solution Architecture Domain. It provides a standardized framework, and in this context, it includes the SAP Reference Architecture Content.
SAP Reference Architecture Content:
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SAP Reference Business Architecture (RBA):
- Core Elements: The RBA is based on SAP's extensive industry experience and aligns with best practices and standards, such as APQC (American Productivity & Quality Center).
- Enterprise Domains: Describes the enterprise through four functional domains: Products & Services, Supply, Customer, and Corporate.
- Business Capabilities: Business Domains and Business Areas are decomposed into Business Capabilities, defining specific abilities needed to deliver value or achieve outcomes.
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SAP Reference Solution Architecture (RSA):
- RSA explores how SAP addresses a customer's business challenge with its unique product portfolio. This will be covered in detail in a subsequent blog post.
SAP Reference Business Architecture (RBA) - Functional and Process Perspectives:
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Functional Perspective:
- Enterprise Domains: Products & Services, Supply, Customer, Corporate.
- Business Capabilities: Defined as particular abilities needed to deliver value or achieve specific outcomes.
-
Process Perspective:
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End-to-End Business Processes: Eight generic processes including Idea to Market, Source to Pay, Plan to Fulfill, Lead to Cash, Recruit to Retire, Acquire to Decommission, Governance, and Finance.
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Generic Business Process Variations: Examples include Lead to Cash for Business-to-Business, Business-to-Consumer Omni-channel Commerce, and Subscription and Usage Business.
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Business Activities: At a granular level, processes can be decomposed into different Business Activities, illustrating how value is generated using specific Business Capabilities.
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Conclusion and Next Steps:
- The SAP Reference Architecture Content, comprising RBA and RSA, aims to align business and IT by mapping business challenges with IT solutions.
- The blog hints at a follow-up post that will focus on SAP Reference Solution Architecture (RSA).
For those interested in exploring the SAP Reference Architecture Content, access is available through the SAP Signavio platform as part of the Beta program.
In summary, the blog provides valuable insights into the SAP EAM and RBA, showcasing the depth of SAP's approach to aligning business and IT for effective enterprise transformation.
